REG - Star Energy Group - Sale of Croatian geothermal company

Star EnergyAnnouncement

24/04/2026 11:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260424:nRSX8694Ba&default-theme=true

RNS Number : 8694B  Star Energy Group PLC  24 April 2026

24 April 2026

 

This information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

Star Energy Group plc

("Star Energy" or the "Company" or "the Group")

 

Sale of Croatian geothermal company

 

Star Energy (AIM:STAR) is pleased to announce that it has signed an agreement
for the sale of  its Croatian subsidiary IGeoPen d.o.o. ("IGeoPen"),  to
Enna Geo d.o.o. IGeoPen's direct parent is A14 Energy Limited ("A14 Energy")
of which Star Energy owns 71%, with 29% being owned by its JV partner,
Peninsula International PTE Ltd ("Peninsula").

 

IGeoPen holds three Croatian geothermal exploration licences; Ernestinovo,
Sječe and Pčelić.

 

Consideration for the sale consists of two elements:

a)   An initial cash consideration of €1.5 million - Star Energy's share
is €1.3 million reflecting the A14 Energy shareholder agreements; and

b)   Financial Earn-out of €0.5 million per licence which is payable on
the commercial operation date of a geothermal power plant developed on each of
the three licences - Star Energy's  potential share is €1.5 million.

 

IGeoPen's financial profile reflects its early-stage geothermal development
activities, including a loss before tax of €3.2 million for the year ended
31 December 2024 and net liabilities of €5.5 million at that date. The
forecast for the year ending 31 December 2025 includes an anticipated
investment-related loss of €1.6 million.

 

Given the delay in the announcement of a premium price tariff for geothermal
projects in Croatia by the Croatian Government, the Group believes that a sale
of IGeoPen is in the best interests of its shareholders. The transaction
delivers a clear strategic refocus of the Group's portfolio, allowing
management to concentrate on its core UK oil and gas and geothermal assets. It
releases €5.2 million of restricted cash and removes future capital
commitments arising from the Croatian licences, strengthening the balance
sheet and enhancing financial flexibility, while enabling more disciplined and
value-accretive capital allocation on the Group's UK business.

 

 IGeoPen's activities were partially financed through the Kommunalkredit
Austria AG debt facility, and a portion of the consideration will be
reinvested in UK geothermal assets, in accordance with the terms of the
facility, with the balance supporting general corporate purposes and ongoing
strategic priorities.

 

The Board believes the sale is consistent with its disciplined approach to
capital allocation and focus on driving shareholder value. It strengthens the
Group's balance sheet and reallocates capital away from a non-core
international business.

Following completion, which is expected in H2 2026, management will be focused
on the UK business and on those areas where the Board believes the best
opportunities exist to create value for shareholders, namely:

·      Building on our already stable and resilient oil and gas
operations by continuing to deliver improvements and enhancements similar to
those we have successfully implemented to date across the producing portfolio;

·      Pursuing inorganic oil and gas opportunities in support of the
Group's strategy to create value from its substantial UK tax losses; and

·      maintaining a capital efficient UK geothermal development
platform while continuing to advocate for the policy changes needed to support
investment in the sector.

Commenting today, Ross Glover, Chief Executive Officer, said:

"This transaction is about capital discipline, simplification and strategic
focus. It releases meaningful cash of €5.2 million, enhances financial
flexibility and enables us to focus fully on our UK operations where we see
the clearest path to value creation. That puts management's attention firmly
where we see the best route to creating shareholder value: a stronger and more
resilient UK oil and gas business, pursuing inorganic oil and gas growth
opportunities to create value from our £250 million of tax losses, and
maintaining our UK geothermal option at low cost while we continue to push for
policy change in both geothermal energy but also in domestic oil and gas
production."

 

 

For further information please contact:

 Star Energy Group plc                               Tel: +44 (0) 207 993 9899

 Ross Glover, Chief Executive Officer

 Frances Ward, Chief Financial Officer

 Zeus (Nominated Adviser & Broker)                    Tel: +44 (0) 203 829 5000

 Antonio Bossi, Darshan Patel (Investment Banking)

 Simon Johnson (Corporate Broking)

 Vigo Consulting                                     Tel: +44 (0) 207 597 5970

 Patrick d'Ancona, Amelia Thorn

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISAKQBNKBKDBQB



            Copyright 2019 Regulatory News Service, all rights reserved